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Welcome to our latest edition as we embark on a new financial year filled with fresh opportunities and exciting developments. We hope this message finds you and your loved ones in good health and high spirits.
We are pleased to inform you that our services are operating smoothly, ready to assist you in achieving your finance goals. As always, our assistance comes at no cost to you, as we are compensated by the banks for any referrals made.
Let's delve into the current state of the market and the notable shifts taking place. Variable principal and interest rates have experienced several increases and the competitive market rate for owner occupiers now hovers around 5.79%p.a. Meanwhile, fixed-rate options for one- and two-year terms offer owner occupier rates around 5.95%p.a, and three-year fixed rates at 5.79%p.a. These fixed rates can provide stability in uncertain times. There is also the opportunity for you to split your portfolio with a mixture of fixed and variable rates.
As an accredited broker, we are fortunate to have funders that offer 100% offset accounts on fixed rates which are not available through major lenders.
We have been reviewing new customers and have been noticing banks are neglecting to offer their clients the best market rates. Our complimentary regular rate reviews are more important than ever, as they enable our clients to assess their existing loans, explore better options, and potentially save money.
We understand that each of you has unique financial needs and aspirations. Our dedicated team is here to provide personalised guidance and support, ensuring that you make informed decisions aligned with your goals. Remember, we are just a phone call or email away, ready to assist you with any financial queries or assistance you may require.
- Richard
Interest rates are changing every day. To make sure that you are paying the least interest on your mortgage, it is important to conduct a review of your loans.
Glynn Finance offers an obligation free mortgage review to all new and existing customers. Using our panel of over 30 Australian lenders we will compare your current loan/s with the best offers available on the market. We will then provide you with a comprehensive report and can refinance if a more suitable product is available.
Even a slightly lower interest rate could save you a lot of money over the life of your loan. Reducing your rate by 0.50% would save you $4,000 in interest every year on an $800,000 mortgage. To get your complimentary rate review started, visit our Rate My Rate page, or contact us today!
Please note all rate reviews are conducted by experienced in-house professionals with over 20 years of experience and tertiary qualifications.
In recent months, the demand for responsible mortgage providers has dramatically increased. Many clients now consider the environmental, social and governance standards of each lender when selecting their preferred product. Fortunately, this demand has been met with a handful of responsible lenders.
At Glynn Finance, we have accreditation with these banks that aim for fully carbon neutral operations, invest into renewable energy, and focus on ethical practices. These lenders provide products that consider more than just the mortgage. If you are interested in the ethical mortgage alternatives and would like to understand more, contact us today!
| ESG Product | Interest Rate |
|---|---|
| Owner-Occupied, Variable Principal & Interest | 5.79% p.a. |
| Owner-Occupied, 2 Years Fixed Principal & Interest | 5.95% p.a. |
| Investment, Variable Interest Only | 6.19% p.a. |
| Investment, 3 Years Fixed Interest Only | 6.09% p.a. |
Owner-Occupied Loans are undertaken by people who will reside in the premises for at least twelve months. They can be a basic or a fully featured product with the lowest rates available.
Fully featured products can offer 100% off-set accounts, multiple loan accounts, and credit and debit cards. They can give you the flexibility to split your loan into a portion on a fixed rate and a portion on a variable rate. The fixed rate gives you the security of knowing your repayments for up to 5 years. The variable gives you banking flexibility, interest savings (if rates reduce), and off-set accounts.
For those wanting to take advantage of other features, a 'packaged product' can offer just that. These packages include an Offset Account, the option to open a new Credit Card and other beneficial choices.
To learn more about the options available to you, contact us today!
| Loan Category | Interest Rate |
|---|---|
| Best Variable Basic Product | 5.79% p.a. |
| Best Variable Package Product with Offset Account | 5.79% p.a. |
| 1 Year Fixed | 5.99% p.a. |
| 2 Years Fixed | 5.95% p.a. |
| 3 Years Fixed | 5.79% p.a. |
| 4 Years Fixed | 5.89% p.a. |
| 5 Years Fixed | 5.89% p.a. |
Building wealth through property investment is a way to achieve your financial goals. By purchasing an investment property, you can generate rental income and capital gains on the property.
Investment loans are available with interest only repayments for 1, 2, 3, 4 or 5 year periods. Selecting the right investment loan will make a big difference to your investment return and your cashflow. Investment loans are available with both interest only and principal and interest repayments.
For more information regarding our investment loans, contact us today!
| Investment Product - Interest Only Repayments | Interest Rate* |
|---|---|
| Variable | 6.40% p.a. |
| 1 Years Fixed | 6.24% p.a. |
| 2 Years Fixed | 6.09% p.a. |
| 3 Years Fixed | 6.19% p.a. |
| 4 Years Fixed | 6.34% p.a. |
| 5 Years Fixed | 6.45% p.a. |
| Investment Product - Principal and Interest Repayments | Interest Rate* |
|---|---|
| Variable | 5.95% p.a. |
| 1 Years Fixed | 6.24% p.a. |
| 2 Years Fixed | 6.09% p.a. |
| 3 Years Fixed | 5.99% p.a. |
| 4 Years Fixed | 6.15% p.a. |
| 5 Years Fixed | 6.09% p.a. |
Fixed Rates are a great option for home buyers and investors. They offer the chance to fix your interest rate for 1, 2, 3, 4 or 5 years. Should interest rates go up in the near future, your loan repayments will not be impacted.
Not only does this give you the certainty of repayments moving forward, but fixed interest rates can be lower than some variable rate alternatives.
You may not know that some of our small independent banks offer full offset accounts on their fixed rates mortgages, unlike any major lenders.
Fixed interest rates are available for both owner-occupied and investment loans. Please visit the Owner Occupied/Investment Loan sections of this newsletter to learn more about the competitive fixed interest rates on offer.
Recently, split loans have been becoming increasingly popular, offering the option to divide your loan across multiple products. For example, you could take a variable, two-year fixed and three-year fixed rate on the same facility to take advantage of all rate opportunities and obtain both security and flexibility when it comes to rate changes.
For more information regarding our fixed interest rate products, contact us today!
The interest rate on your mortgage is typically lower than the interest rate on your other debts such as personal loans, business loans, vehicle finance, tax debt and credit cards. That's why debt consolidation is a great way to reduce your overall interest expense on those unsecured high interest debts.
At Glynn Finance, we know that consolidating debt is a smart, money-saving strategy. We have helped many customers consolidate their debts and free up their cashflow. This is generally achieved by taking a first registered mortgage over residential property and structing a loan facility with multiple splits for deductable and non-deductable debts. A recent client had 8 new loan splits all with off-set accounts.
Glynn Finance clients have greatly improved their wealth through refinancing their existing mortgage or accessing finance for investment purposes. In scenario 1, we look at how a simple mortgage refinance can drastically change your financial position.
Scenario 1: Refinancing to obtain a lower interest rate.
| Property Value | $2,500,000 |
| Existing Mortgage Debt | $1,500,000 |
| Rate and Repayment Type | Variable, Principal and Interest |
| Existing Interest Rate | 6.59% p.a. |
Many individuals will have an interest rate between 6.29% and 6.79% p.a. on their home mortgage. However, owner-occupied rates at 80% gearing are currently available from 5.79% p.a. (Variable, P&I product). In this scenario, refinancing your mortgage reduces your interest rate by 0.80% p.a.
| NEW Interest Rate | 5.79% p.a. |
| OLD Mortgage Repayments | $9,569.98/month, $114,839.76/year |
| NEW Mortgage Repayments | $8,791.75/month, $105,501/year |
| TOTAL INTEREST SAVINGS | $778.23/month, $9,338.76/year |
Once the refinance is complete, this client is saving $9,338.76 in interest charges per year over the next 30 years being $280,162.80. CHECK YOUR CURRENT RATE!
In scenario 2, we look at how the client above can access available equity in their home to generate cashflow for investment.
Scenario 2: Equity Release of $200,000 from property for investment purposes.
| Existing Mortgage Debt | $1,000,000 |
| Equity Release Amount | $200,000 |
| NEW Mortgage Debt | $1,200,000 |
| Rate and Repayment Type | Variable, Interest Only |
| NEW Interest Rate | 6.29% p.a. |
| Repayments on $200k Equity Release | $1,048.33/month, $12,579.96/year |
In this scenario, the loan has been increased by $200,000. Although this increases the repayments on the mortgage, investing these funds will generate a positive return, as shown below.
| NEW Funds Invested | $200,000 |
| Yield on Investment | 8.00% |
| Return on Investment | $1,333.33/month, $15,999.96/year |
After taking out the available equity from their home, the client has re-invested these funds into a well-performing investment fund. This has generated $16,000 in cashflow each year.
The transfer duty exemption threshold has been increased from $650,000 to $800,000 and the concessional threshold from $800,000 to $1,000,000 for new and existing home purchases by eligible first home buyers. Perrottet’s First Home Buyer’s Choice has been discontinued, removing the option to pay an annual land tax in lieu of stamp duty. However, buyers who are currently under this plan will not be affected.
The Victorian government has several policies operating to aid first home buyers. The Victorian Homebuyer Fund shared equity scheme, allowing first home buyers with a deposit of as little as 5% to apply for loans with the Victorian Government contributing up to 25% of the purchase price in exchange for an equivalent share in the property. As the broker, we can help you through the technicalities.
First Home Buyers purchasing property worth up to $600,000 are exempt from stamp duty, with a tapered stamp duty for homes between $650,000 and $750,000. Victorian farmers remain eligible for stamp duty concessions on purchase of their first farm. First Home Owner grant of $10,000 is available when buying or building a first new home.
Annual Land tax needs to be considered for investment properties in Victoria.
The Queensland Government provides several options for grants including the First Home Owner’s Grant, which offers $15,000 towards buying or building a new home to eligible purchases.
We also specialise with self-employed borrowers. In these circumstances income can be measured via a myriad of different avenues. Best we chat!